Kyocera Corporation today announced that it has concluded a basic agreement as of September 29 to acquire the majority of shares of a company to be established from the company split of Ryobi Limited’s power tool business.
Kyocera to acquire 80 percent of shares in a company to be established by incorporation-type company split that will assume Ryobi’s power tool business. Details of the company to be established have not yet been determined. In an earlier report, Reuters said the deal is worth $136 million.
The acquisition is expected to be completed in January 2018. Through the acquisition, Kyocera aims to promote diversification and further expansion of its cutting tool business.
Kyocera has been focusing its efforts on diversifying and expanding sales of products from its core of indexable tools to solid carbide tools, woodworking tools, as well as power tools for the construction industry.
Kyocera has recently strengthened its power tool business in the U.S. and European markets through targeted acquisitions of the Unimerco Group in Europe (now KYOCERA UNIMERCO A/S) in 2011 and SENCO Holdings, Inc. in August of this year (now KYOCERA SENCO Industrial Tools, Inc.)